Amazon.com Inc. said on Wednesday it is opening a general store in New York City that will sell toys, household goods and many other products highly rated on its website.
The news is basically Amazon’s latest incursion into the turf of rivals such as Target Corp.; Amazon, the world’s largest online retailer, is increasingly turning to physical stores to please customers.
Michael Pachter, an analyst at Wedbush Securities, said Amazon will add new stores if the format takes off, but he expects it may not. “If I’m looking for a television and the store is full of kitchen appliances, it doesn’t help me very much,” he said.
Also, grocery remains the other key category for Amazon’s brick-and-mortar play. The company bought Whole Foods Market in a $13.7 billion deal last year. It is also rolling out smaller grocery shops known as Amazon Go, where in-store technology allows customers to walk out with items and have their credit cards billed without having to stop and see a cashier.Trade here